It makes me laugh when people say the markets are random. Here is the Gold Bugs index. I have run a Murrey Math square using 500 and 375,starting at the solstice and finishing at the equinox 6 months later

Wednesday, 27 February 2013

Jim Grant, astute monetary economist and respected author of the Interest Rate Observer said in a Bloomberg interview overnight that the dollar would crash and a new Gold Standard would be the end result of the U.S. Federal Reserve’s irresponsibilities.
Although the interviewer said that Grant’s remarks were inflammatory Grant said that it is important to examine our monetary affairs over the sweep of time.
“Over 100 years ago the U.S. Fed was founded and in 1944 at Bretton Woods they decided there would be no more Gold Standard but rather a U.S. dollar that was backed by gold. If you fast forward to the present we now have a full blown PhD standard where the former heads of Economic Departments are running federal institutions. Central Banks across the world are waging an all out struggle against the price mechanism which is going against Adam Smith’s invisible hand.”
A guest host said that no one in academia is calling for a Gold Standard and suggested it would result in a deflationary period for the U.S.
Grant disagreed and said that the Gold Standard is the only answer as it was monetary system good practice for the 100 years ending in 1914, whereas everything else since has been a “try out”.
Grant says that he expects more quantitative easing from the U. S. Fed, and likens their single mindedness to a doctor prescribing to a patient that is clearly overmedicated.
He notes, credit in the world is an infinite sum of numerous simultaneous equations. He notes that if humans knew how to allocate credit than the USSR would have been a success. Socialists unions over manipulating credit don’t work.
Therefore, just as central banks are continually try to print their way out of our current global debt crisis their manipulation is not working.

In his book Princes of the Yen (2003),Werner maintains that in
the 1990s, the BOJ consistently foiled government attempts at creating a
recovery. As summarized in a review of the book:

The
post-war disappearance of the military triggered a power struggle
between the Ministry of Finance and the Bank of Japan for control over
the economy. While the Ministry strove to maintain the controlled
economic system that created Japan’s post-war economic miracle, the
central bank plotted to break free from the Ministry by reverting to
the free markets of the 1920s.. . . They reckoned that
the wartime economic system and the vast legal powers of the Ministry
of Finance could only be overthrown if there was a large crisis – one
that would be blamed on the ministry. While observers assumed that all
policy-makers have been trying their best to kick-start Japan’s
economy over the past decade, the surprising truth is that one key
institution did not try hard at all.

[T]hose central bankers who were in
charge of the policies that prolonged the recession were the very same
people who were responsible for the creation of the bubble. . . .
[They] ordered the banks to expand their lending aggressively during
the 1980s. In 1989, [they] suddenly tightened their credit controls,
thus bringing down the house of cards that they had built up before. . .
.With banks paralysed by bad debts, the central bank
held the key to a recovery: only it could step in and create more
credit. It failed to do so, and hence the recession continued for
years. Thanks to the long recession, the Ministry of Finance was
broken up and lost its powers. The Bank of Japan became independent and
its power has now become legal.

As bearish as I feel on Europe right now we have to respect the fact that the Dax has not yet broken support
The Murrey math levels 5000,6250 and 7500 have been significant support and resistance MA's are bearish but we could still be in a bull flag.Should be clearer by end of week